Bhrikuti Paper Factory in Ruins, Nepal More Reliant on Imports

Kathmandu. Once considered the basis of Nepal's self-sufficiency in paper production, Bhrikuti Paper Factory is now limited to dilapidated structures and closed machinery. This industry, established with the objective of producing paper domestically and replacing imports, has not seen any concrete initiative for its revival even after a decade and a half of closure. With the closure of the industry, Nepal has become even more dependent on the import of paper and paper products.

Bhrikuti Paper Factory was established in Gaidakot of Nawalparasi (now Nawalpur) with the assistance of the then People's Republic of China government. Established in 2039 BS, the industry started commercial production in 2043 BS. With a daily production capacity of about 42 metric tons of paper, this industry used to supply about 35 percent of Nepal's total paper demand at that time. The factory also used to export high-quality pulp to countries including Japan.

After 2048 BS, the industry was privatized according to the liberal economic policy adopted by the government, and its name was changed to Bhrikuti Pulp and Paper Limited. Although production and financial conditions improved somewhat in the initial phase of privatization, it could not be sustained long-term. Due to weaknesses in management, investment, and market management, the industry gradually fell into crisis and eventually production completely stopped from February 2067 BS. Experts say that various structural, economic, and managerial problems, not a single reason, were responsible for the closure of Bhrikuti Paper Factory.

The main challenges became the lack of raw materials required for industry operation, continuous increase in production costs, failure to modernize old machines and technology in a timely manner, management weaknesses, economic crisis, and inability to compete with cheap imported paper. Due to the lack of expected investment and effective operation after privatization, these problems deepened, and the industry eventually closed down.

Currently, the buildings, machines, and other infrastructure of Bhrikuti Paper Factory are in a dilapidated state. Most of the equipment has rusted and become unusable, and the factory premises are covered with bushes. After the closure of the industry, employees have been complaining about not receiving their service facilities for a long time. Local residents and stakeholders have repeatedly demanded from the government to bring the industry back into operation or use it for alternative industrial purposes.

With the closure of Bhrikuti Paper Factory, Nepal has become more dependent on imports for paper production. Currently, most of the paper for printing, packaging, educational materials, office use, and industrial purposes are imported from countries including India, China, and Indonesia. As domestic production weakens, paper and paper products worth billions of rupees are imported from abroad every year. With the expansion of digital technology, even the handmade Nepali paper industry is facing the challenge of market expansion.

Debate on Resumption

Industrial sector experts say that Bhrikuti Paper Factory is an important asset of Nepal's industrial history. According to them, if the industry can be revived through modern technology, sustainable raw material management, and public-private partnership, it can make a significant contribution to import substitution, employment generation, and the development of a productive economy.

However, although there is occasional debate about the resumption of the industry, no concrete government decision or investment process has moved forward so far. As a result, Bhrikuti Paper Factory, once a symbol of Nepal's industrial self-sufficiency, is now limited only to ruins reminding of past glory. Its revival is not just a matter of resuming an industry but is being seen as an issue connected with Nepal's productive economy and industrial renaissance. Photo: Nepal Photo Library